Connected Tire Market Size, Share, Growth & COVID-19 Impact Analysis, By Vehicle Type (Passenger Cars and Commercial Vehicles), By Rim Size (12-17, 18-21, and More than 22), and Regional Forecasts, 2022-2029

The global connected tire market size was valued at USD 1.94 million in 2023. The market is projected to grow from USD 3.24 million in 2024 to USD 101.99 million by 2032, exhibiting a CAGR of 53.9% during the forecast period.

Connected tires are equipped with multiple sensors which help monitor the condition of the tire and transfer the collected information to the vehicle in real-time. The tires are equipped with various IoT devices and several other sensors-based systems, including a pressure monitoring system, temperature control systems, advanced assistance system, and others. It transfers the gathered information, such as tire pressure, road condition, tread depth, acceleration, and tire temperature, which helps predict working conditions of tires, maintenance requirements, and deviation alert as well as to adjust the suspension, emergency braking, traction control, and others. The increase in technological innovation in the automotive industry is one of the primary factors supporting future developments in this technology.

Factors such as surge in demand for road safety and the growing demand for passenger vehicles equipped with advanced safety features are also propelling the growth of the market. Moreover, the increasing deployment of connected features in vehicles along with the rise in development and commercialization of autonomous mobility is another key growth factor. The technology demand will also be driven by the growing need for effective tire management from the fleet operators to reduce replacement and maintenance costs of the tires. Additionally, government support for the development and adoption of smart vehicles across developed and developing countries will provide lucrative growth opportunities for the market.

However, it is an emerging technology and currently in the nascent stage. Therefore, the high initial cost of the technology and lack of awareness among the consumers is anticipated to hamper the Connected Tire Market growth during the forecast period. In addition, the lack of related infrastructure in several developing countries across the world is further expected to hinder the growth of the market.

During the COVID-19 pandemic, as a result of government-imposed lockdowns, the supply of car components was disrupted. Major automakers such as Volkswagen, General Motors, Daimler, Hyundai, PSA Group, and BMW halted manufacturing during the pandemic. These factors had an adverse impact on the market during the pandemic. 

Connected Tire Market Trends

Rising Trend of Adoption of Internet of Things (IoT) in Automobiles to Drive Market Growth

With growing connectivity in the Internet of Things (IoT) era, tire manufacturers are inclining toward diverse telematics solutions for mobility, data sharing, and connected vehicles. Leading tire manufacturers operating in the tire industry such as Michelin, Bridgestone, Continental, and Goodyear are testing IoT-connected sensors to provide longer tire life, higher fuel efficiency, and enhanced safety to vehicle fleet owners. For instance, Goodyear Tire & Rubber Company introduced Eagle 350 Urban, a spherical concept tire. It will exchange the data via vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication with the help of the Internet of Things (IoT) and Li-Fi, a mobile wireless technology based on the light. Apart from tire manufacturers, leading technology aggregators such as Microsoft are also investing and focusing on the integration of various Internet of Things (IoT) systems and sensors to enhance overall vehicular safety.

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Connected Tire Market Growth Factors

Rise of Autonomous Driving and Connected Vehicles to Drive Market Growth

The growth of self-driving autonomous and connected vehicles has accelerated the growth of the technology used in all parts of the vehicle. With the help of advanced vehicle parts, such as connected tires, vehicle manufacturers increase the efficiency of connected vehicles by getting real-time feedback from such parts. These provide functions such as data collection, analysis, and storage, which aid in decision-making. The connected vehicle infrastructure is rapidly expanding across the globe owing to rising emergence of new market players operating on connected vehicle technology. The integration of 5G, in-vehicle payments, telematics and fleet tracking, smart parking are some of the major technologies aiding in the widespread adoption of connected vehicle architecture.

Rapid economic growth ensures robust development of transportation infrastructure and smart city projects. Many countries, including Mexico, Canada, and the U.S., are building digital infrastructure to enable communication between automobiles and infrastructures to gather crucial information, reduce traffic congestion, and increase road safety. The rise in the construction of smart cities is predicted to propel autonomous vehicle deployment significantly, thereby fueling the adoption of smart tires. It provides real-time data on pressure & temperature, road conditions, load detection, tread wear & depth, and other parameters, which help enhance the stability and accuracy of self-driving vehicles.

Rising Integration of Advanced Features in Vehicle to Boost Technology Adoption

The growing deployment of advanced technologies in vehicles, such as tire pressure monitoring systems, temperature control systems, and others to prevent vehicle breakdowns, is expected to drive the market growth. In addition, the increased installation of various sensors in car tires, which provides real-time data analysis to vehicle users, is expected to propel the growth of market.

The leading tire manufacturers operating in the tire market are investing in technology advancements, such as B-Tag Systems, which monitor and transfer tire pressure and temperature and warn the driver about tire repair, avoiding operational downtime. Moreover, the increase in the integration of artificial intelligence and machine learning in vehicle tires, such as rim management and tread detection systems, helps track the performance of tires. Therefore, the rising integration of advanced features in vehicles is expected to drive the global market. The leading tire manufacturers are collaborating with connected vehicle technology providers for the deployment of connected features in vehicles.

Increasing Adoption of Intelligent Transportation System by Commercial Vehicles Fleet Operators to Aid Growth

Through digital monitoring technologies, such smart wheels enable commercial vehicle manufacturers to manage and monitor their vehicles fleets as they help in providing real-time information about the condition of tire as well as vehicle. The increasing trend of vehicle data collection such as tire pressure monitoring, engine performance, and similar other vehicle data insights are further supporting the adoption of connected tire technology. This stored information is further used to analyze operational timings, vehicle metrics, and various other factors and are used for improving the overall efficiency of operations.

The increasing volume of commercial vehicles over time, fleet operators have been able to monitor numerous metrics such as fuel consumption and carbon emissions, resulting in an increased need for advanced tires that give real-time monitoring of tire conditions. Through digital monitoring technologies, it enable commercial vehicle manufacturers to manage and monitor their fleets more efficiently. As the industry realizes the trend of developing these next-generation vehicles, the reliance on traditional tires is projected to be replaced by the adoption of connected and IoT sensor-enabled tires.

RESTRAINING FACTORS

High Cost of Connected Tire Along with Risk of Data Theft to Hamper Technology Adoption

The cost of all components and sensor assembly in these tires significantly increases the overall manufacturing cost of vehicles. Also, additional cost related to hardware systems, connectivity solutions charges, and telecommunications services equipped in the vehicle for operation of such tire, further rise the overall cost, which may restrict the growth of the market. Furthermore, these extremely technologically advanced tires come with a slew of issues and complexities, including malfunctions and breakdowns, requiring regular maintenance. Furthermore, the considerable danger of hackers gaining access to system data and illegal access to car functionalities might hamper the adoption of intelligent tires, which, in turn, is expected to hinder the market growth.

Lack of Uninterrupted & Seamless Internet Connectivity Could Affect Technology Potential

The primary goal of a connected tire is to share the tire-related data with the vehicle and to the outside infrastructure. Even when traveling, people require continual internet access. Customers want their cars to accomplish duties comparable to those performed by their computers or smartphones. Interrupted connectivity may be a stumbling block for the smart tire segment as it does not provide continuous internet service. This is mainly due to inconsistency in the network offered by service providers, which varies for different regions. Thus, lack of uninterrupted & seamless internet connectivity is expected to hinder the growth of the market.

Connected Tire Market Segmentation Analysis

By Vehicle Type Analysis

Increasing Demand for Passenger Cars from Consumers to Drive Segment Growth throughout the forecast period.

Based on vehicle type, the connected tire market share is bifurcated into passenger cars and commercial vehicles.

The passenger cars segment held the largest market share in 2023 and is expected to continue its lead over the forecast period. This is primarily due to the factors such as increasing demand for road safety owing to the rise in the number of road accidents across the world. Furthermore, increasing consumer awareness of passenger car owners and willingness to adopt connected vehicle technology is further expected to drive the segment growth throughout the forecast period.

The commercial vehicles segment is expected to witness the fastest growth during 2024-2032. Factors such as growing demand for tire monitoring systems and rising demand for predictive maintenance from commercial vehicle fleet operators are expected to foster the segment growth. Moreover, the emergence and growing popularity of truck platooning is further expected to provide lucrative opportunities for segmental growth.

By Rim Size Analysis

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Increasing Adoption of Large Rim Size in Vehicles to Drive Segment Growth over Forecast period.

Based on rim size, the market share is broken down into 12" – 17", 18" – 21", and more than 22".

The 18"-21" segment is expected to witness significant growth over the projected period. The growth of the segment is mostly influenced by the increase in sales of vehicles equipped with rim sizes ranging from 18" to 21”. Furthermore, increasing demand for luxury vehicles equipped with advanced features further supports the segmental growth as these wheels are often employed in luxury vehicles.

The more than 22" segment is expected to register the second-highest growth rate during 2024-2032. Increasing usage of big rim size in automobiles to increase cornering, traction, braking, and other aspects is likely to boost segmental growth. Furthermore, the industry is predicted to rise due to rising development and implementation of connected technologies in vehicles.

REGIONAL INSIGHTS

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Europe accounted for the largest market share of the market in 2023 and is expected to continue its dominance over the forecast period. The strong presence of prominent, such as Michelin, Pirelli & C.S.p.A., Continental AG, among other key players, and technological advancements in the region are expected to drive market growth. Additionally, the rapid adoption of connected and autonomous vehicles in the region is further anticipated to accelerate the market growth in future.

Asia Pacific is likely to witness the highest CAGR from 2024 to 2032. Growing passenger vehicle sales in the emerging countries of Asia Pacific, including China, Japan, South Korea, and others, is expected to boost the market growth in the Asia Pacific. Moreover, increasing demand for effective fleet management and predictive maintenance in Asia Pacific’s well-established logistics and ride-hailing industry are anticipated to drive the growth of the market in Asia Pacific. Furthermore, growing sales of vehicles in Asian countries, such as China, India, and Japan, also fuel the growth of the market in the region.

North America is the second-largest region in the market. Rapid advancements in the development and commercialization of connected as well as autonomous vehicles is the key factor driving the growth of the region. In addition, the presence of prominent automobile technology players coupled with the greater availability of related infrastructure will further propel the growth of the market in North America.

The market across the rest of the world is expected to register a considerable CAGR from 2024 to 2032. Increasing adoption of technologically advanced vehicles in the regions coupled with expanding investment in related infrastructures in Latin America and the Middle East is likely to fuel the market growth in the coming years.

List of Key Companies in Connected Tire Market

Focus on Early Development of Connected Tire Technology to Drive the Competition

The market is saturated with limited players present worldwide. The companies operating in the market are focusing on the development and introduction of smart and intelligent tire. For instance, leading players such as Michelin, Pirelli & C.S.p.A., Bridgestone Corporation, Continental AG, and others are developing new connected tire concepts. In addition, major players are also adopting various strategies such as product development & testing, partnerships, collaborations, business expansion, and mergers & acquisitions to grab untapped opportunities in emerging markets.

Michelin is One of the Leading Players in the Market 

Michelin is one of the leaders in the manufacturing and marketing of tires and is based in Clermont-Ferrand, France. The company designs, develop, manufactures, and sells tires for light vehicles, passenger cars, and heavy trucks. Michelin is a pioneer in connected tire. It is the world’s largest manufacturer of sustainable, connected, and radial tires for farm machinery, civil engineering applications, and aircraft as well as the world leader in off-the-road solutions. It offers solutions built around high-tech materials and the real-time management of connected tire.

LIST OF KEY COMPANIES PROFILED:

• Michelin (France)


• Pirelli & C. S.p.A. (Italy)


• Goodyear Tire & Rubber Company (U.S.)


• Continental AG (Germany)


• Bridgestone Corporation (Japan)


• Nokian Tyres plc (Finland)


• Trelleborg AB (Sweden)


• Sumitomo Rubber Industries, Ltd (Japan)


• JK Tyres (India)


• Toyo Tires (Japan)

KEY INDUSTRY DEVELOPMENTS:

• January 2024: Tire Monitoring System (TMS) launched its new tire pressure sensor system designed specifically for industrial and Off-the-Road (OTR) vehicles. The system will address the need for sensor tire pressure for vehicles used for mining, earth-moving, mobile cranes, container ports, and mass-transit systems.


• September 2023: Infineon Technologies AG announced the launch of XENSIV, a new tire pressure sensor which harbors intelligent features suitable for pressure monitoring systems. The new sensor is suitable of intelligent tire functions such as on-tire auto-position sensing, tire inflation assistance, tire blowout detection, and load detection.


• August 2023: Continental AG announced the integration of real time digital tire monitoring options for free standing truck trailers. The rechargeable battery provides routine readings of tire data up to 28 days. The telematics devices gets input from the tire sensors which is then wired to Conticonnect portal for users to view.


• July 2023: U.S. based developer Doran Manufacturing announced its partnership with Samsara in which both the companies will be focusing on providing customers ability to track tire pressure and temperature data that will be displayed on their Samsara dashboard. The company aims to increase vehicle safety and increase vehicle equipment work time through this integration.


• May 2023: Aperia Technologies Inc., one of the leading market suppliers of automotive management technologies announced its “Halo Connect” platform which focuses on predictive maintenance, including tire predictive maintenance for heavy medium, and light-duty commercial vehicles.

REPORT COVERAGE

The market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market in recent years.

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